Equity Capital Markets and Advisory Business, Auctus Advisors

Auctus Advisors

Equity Capital Markets and Advisory Business

Auctus Advisors is a specialist Equity Capital Markets and Advisory business with a focus in the Energy Sector. The partners have complementary skill sets, with decades of experience across Equity Capital Markets, Investment Banking and the Energy industry. We have worked at Société Générale, Canaccord Capital, BMO Capital Markets and Schlumberger. Most recently we have worked together for many years at GMP FirstEnergy. Auctus has been set up at the beginning of a new decade in which we see significant opportunities in the Energy space. Globally, demand for energy is at record levels and continues to grow. Conversely, investment in traditional energy sources has been severely constrained. We believe this imbalance creates opportunities for both companies and investors. Auctus provides Corporate Broking, Equity Research and Investment Banking services.

Equity Bottom-Up

<ul><li>The Carrizales Norte-1 (CN-1) exploration well encountered a total of 148 feet of net oil pay measured depth (128 feet TVD) across three very high quality sands.</li><li>This is the largest net oil pay encountered by a well so far on Tapir (RCE-5: 90 feet, RCE-4: 45 feet, RCE-3: 58 feet, RCE-2 80 feet, RCS-1: 55 feet).</li><li>Because the reservoirs encountered at CN-1 are slightly deeper than at Rio Cravo, the pressure of the reservoirs is expected to be higher, resulting in high production rates.</li></ul>

The Carrizales Norte-1 (CN-1) exploration well encountered a total of 148 feet of net oil pay measured depth (128 feet TVD) across three very high quality sands.This is the largest net oil pay encountered by a well so far on Tapir (RCE-5: 90 feet, RCE-4: 45 feet, RCE-3: 58 feet, RCE-2 80 feet, RCS-1: 55 feet).Because the reservoirs encountered at CN-1 are slightly deeper than at Rio Cravo, the pressure of the reservoirs is expected to be higher, resulting in high production rates.

Arrow Exploration Corp - Exploration Success at Carrizales Norte

<ul><li>4Q22 production was 1,736 boe/d with cash of US$13 mm at YE22.</li><li>Production at the new wells on the Rio Cravo Este field continues to ramp-up slowly to prevent early water breakthrough.</li><li>At US$80/bbl for Brent from 2Q23 to YE24, we forecast YE23 net cash of US$16 mm increasing to US$53 mm at YE24 (~80% of the current market cap).</li></ul>

4Q22 production was 1,736 boe/d with cash of US$13 mm at YE22.Production at the new wells on the Rio Cravo Este field continues to ramp-up slowly to prevent early water breakthrough.At US$80/bbl for Brent from 2Q23 to YE24, we forecast YE23 net cash of US$16 mm increasing to US$53 mm at YE24 (~80% of the current market cap).

Arrow Exploration Corp. (AIM: AXL) - Good 4Q22 Results.

<ul><li>The RCE-5 well flowed 680 bbl/d (340 bbl/d net to Arrow) of oil over the last 24 hours. </li><li>The RCE-4 and RCE-3 wells are now producing respectively 944 bbl/d and 852 bbl/d (487 bbl/d and 426 bbl/d net).</li><li>At US$85/bbl for Brent from 2Q23 to YE24, we forecast YE23 net cash of US$19 mm increasing to US$55 mm at YE24 (85% of the current market cap).</li></ul>

The RCE-5 well flowed 680 bbl/d (340 bbl/d net to Arrow) of oil over the last 24 hours. The RCE-4 and RCE-3 wells are now producing respectively 944 bbl/d and 852 bbl/d (487 bbl/d and 426 bbl/d net).At US$85/bbl for Brent from 2Q23 to YE24, we forecast YE23 net cash of US$19 mm increasing to US$55 mm at YE24 (85% of the current market cap).

Arrow Exploration Corp. - Reaching 2,635 Bbl/D Without Capella. High Cash Position

<ul><li>The RCE-5 well encountered 90 feet of net oil pay across the Carbonera C7 (36 feet) and the Lower Gacheta sands (54 feet).</li><li>RCE-5 encountered the largest net pay in the current programme.</li><li>Carrizales Norte Carrizales Norte is a very high chance of success prospect (~75% but we assume 50% in our forecasts).</li></ul>

The RCE-5 well encountered 90 feet of net oil pay across the Carbonera C7 (36 feet) and the Lower Gacheta sands (54 feet).RCE-5 encountered the largest net pay in the current programme.Carrizales Norte Carrizales Norte is a very high chance of success prospect (~75% but we assume 50% in our forecasts).

Arrow Exploration Corp. -  The RCE-5 Well Encounters One of the Largest Net Pay to Date

<ul><li>Arrow’s 1P, 2P and 3P reserves were estimated at respectively 3.4 mmboe, 7.7 mmboe and 11.7 mmboe at YE22.</li><li>This includes mmboe 2P reserves and 4.3 mmboe 3P reserves at the company’s core assets in Colombia (Tapir and Oso Pardo).</li><li>Other reserves movements The YE22 2P and 3P reserves at Ombu (4.6 mmboe and mmboe respectively) are broadly unchanged compared with the estimates at the end of June.</li></ul>

Arrow’s 1P, 2P and 3P reserves were estimated at respectively 3.4 mmboe, 7.7 mmboe and 11.7 mmboe at YE22.This includes mmboe 2P reserves and 4.3 mmboe 3P reserves at the company’s core assets in Colombia (Tapir and Oso Pardo).Other reserves movements The YE22 2P and 3P reserves at Ombu (4.6 mmboe and mmboe respectively) are broadly unchanged compared with the estimates at the end of June.

Arrow Exploration Corp. (AIM: AXL) - Adding Reserves in Colombia

Canada

Arrow Exploration is a Canadian junior oil and gas company focused on the acquisition, exploration, development, and production of crude oil and natural gas properties. The company operates in two segments: Colombia, its core area of operations, and Canada. Its primary assets are in Colombia's Llanos and Middle Magdalena Basins. The company was formed in 2018 and is headquartered in Calgary, Canada.

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Arrow Exploration (AXL LN)

Arrow Exploration Corp - Exploration Success at Carrizales Norte

The Carrizales Norte-1 (CN-1) exploration well encountered a total of 148 feet of net oil pay measured depth (128 feet TVD) across three very high...

Auctus Advisors

Arrow Exploration Corp. (AIM: AXL) - Good 4Q22 Results.

4Q22 production was 1,736 boe/d with cash of US$13 mm at YE22. Production at the new wells on the Rio Cravo Este field continues to ramp-up slowly...

Auctus Advisors

Arrow Exploration Corp. - Reaching 2,635 Bbl/D Without Capella. High Cash Position

The RCE-5 well flowed 680 bbl/d (340 bbl/d net to Arrow) of oil over the last 24 hours. The RCE-4 and RCE-3 wells are now producing respectively...

Auctus Advisors

Arrow Exploration Corp. - The RCE-5 Well Encounters One of the Largest Net Pay to Date

The RCE-5 well encountered 90 feet of net oil pay across the Carbonera C7 (36 feet) and the Lower Gacheta sands (54 feet). RCE-5 encountered the...

Auctus Advisors

Arrow Exploration Corp. (AIM: AXL) - Adding Reserves in Colombia

Other reserves movements The YE22 2P and 3P reserves at Ombu (4.6 mmboe and mmboe respectively) are broadly unchanged compared with the estimates...

Auctus Advisors

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